Computer Weekly readers have their say
Scrap IR35 legislation to avert a skills
crisis
I read Bill Goodwin’s article on the projected skills shortage
(Computer Weekly, 11 April), with interest.
The fact of the matter is that this situation will continue to
deteriorate until we have no software industry left. The problem is
that the government has slapped the IR35 intermediaries legislation
on contractors, thus killing off the seed corn from which
experienced IT managers grow.
We are now four years or so down the line, during which time
good IT personnel have gone abroad or just stayed in their
positions in which the entrepreneurial flame is quenched. This
situation will continue indefinitely, since the government is
determined to continue to put the screws on the contractor
market.
Training tax breaks will not be efficient in sorting this mess
out. The only thing that is needed is experience, which is very
costly to acquire. For instance, who will take the risk of being a
contractor with the government feeding off the good times and
giving nothing back in the bad times?
It is going to cost the government dear in the long term, to the
tune of many billions of pounds. But by then the Conservatives will
be back in power and the Labour leeches will be able to blame the
Conservatives for the demise of our IT industry, since all the jobs
will be exported to India, which by then will have raised its rates
to match those of Europe or the US.
What the government ought to do is abolish IR35 and slap massive
tax disincentives on the export of IT jobs. With the resurrection
of the UK IT industry – with all the tax and other revenues that it
will generate, the reduction of social security payments to
out-of-work IT personnel and the funds raised from import taxes –
the government will have far more money to spend on its pet
projects.
Rupert Stanley, Ross Systems International
Compliance challenges can put IT in the
limelight
The security aspect of compliance poses a very real challenge to
IT directors, as outlined in your article (“Compliance quandary”,
Computer Weekly, 25 April).
Equally, it obliges them to become proficient in some elements
of the law, as highlighted with the BCS’ new foundation certificate
in IT law.
Regulatory mandates such as Sarbanes-Oxley and Basel 2 have
brought increased demands on data protection efforts and
non-compliance exposes firms to financial penalties and
litigation.
Many companies are unsure how to store data and exactly what
they should keep in order to comply. The IT department is under
pressure from the business to reduce the cost per gigabyte of
stored data, while still having to ensure near 100%
recoverability.
With the explosion in volume of data, the implementation of
service level agreements and the requirements of new regulations,
the role of the IT professional has become even more challenging.
But we should welcome these challenges as they affirm the position
of the IT professional in the boardroom and ultimately make the job
more satisfying.
Drake Pruitt, Bocada
Firms must stop keeping up with the Joneses
How many organisations really have any idea of the true cost of
ownership of new technologies that they implement? (“A third of
firms ‘unable to calculate’ the cost of IT systems”, Computer
Weekly, 25 April).
And just how much technology is being implemented without either
a clear requirement or objective for return on investment?
Investing in technology on a “me too” basis makes no commercial
sense. And yet it is becoming commonplace.
Technology underpins every facet of business today, with
downtime or poor performance fundamentally compromising
profitability. Yet despite the apparent maturity of the industry
few companies have achieved any real understanding of how best to
exploit IT to deliver business success.
Instead, organisations lurch from one technology implementation
to another, with decisions based on a number of spurious demands
with no one at any level prepared to take any real responsibility
for ensuring the delivery of a tangible return on investment.
And once aboard this IT carousel it is near impossible to step
off; organisations must consider how many “must have” investments
will compromise rather than enable business; and at what cost.
In a technology-dependent economy, IT professionals must be
prepared to undertake a vital role that combines technology
innovation with business understanding. In short, isn’t it time to
regain control over IT to achieve real business value?
Richard Barker, Sovereign Business Integration
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